China’s government has responded to Donald Trump’s recent threat of a potential 100% tariff on Chinese goods, labeling it as an example of “US double standards.” A spokesperson from the Commerce Ministry indicated that China might implement its own unspecified “countermeasures” if the US follows through on this threat, asserting that the country is prepared for the possibility of a trade conflict.
On the same day, Trump criticized China’s decision to tighten export regulations on rare earths, accusing the nation of taking a hostile stance and attempting to “hold the world captive.” He suggested the possibility of withdrawing from a scheduled meeting later this month with China’s President Xi Jinping.
Trump’s remarks led to a decline in financial markets, with the S&P 500 index experiencing its largest drop since April, closing down 2.7%. Concerns regarding a potential trade war between the two countries were heightened again, particularly given that the US and China had previously agreed in May to eliminate certain tariffs that had threatened to disrupt trade.
Currently, US tariffs on Chinese goods carry an additional 30% levy compared to earlier in the year, while imports from the US to China face a 10% tariff. China’s recent statements echoed sentiments from earlier trade tensions, criticizing US restrictions on chip exports and defending its own controls over rare earths as measures for national security.
The spokesperson asserted that the US has misused national security concepts and imposed unfair practices against China, reiterating that threats of tariffs are not an effective means of negotiation. While China has historically stated its desire to avoid trade wars, it has also indicated readiness to engage in one if necessary.
Following China’s new restrictions on rare earth exports, which are crucial for advanced technologies, perceptions of the current comments from both Washington and Beijing might be viewed as positioning ahead of upcoming trade discussions. The fate of the anticipated meeting between Trump and Xi remains uncertain at this time.
Source: https://www.bbc.com/news/articles/cn828kg8rmzo?at_medium=RSS&at_campaign=rss